Interim Results

Anglo Pacific Group PLC
03 September 2004



3 September 2004



                           Anglo Pacific Group PLC
            Interim Results for the six months ended 30th June 2004


Anglo Pacific Group is pleased to announce a strong performance for the six
months ended 30th June 2004.


Highlights:



•     Profit before tax up 55% to £2,700,000 (2003: £1,738,000)
•     Profit after tax up 67% to £2,076,000 (2003: £1,245,000)
•     Earnings per share up 66% to 2.36p (2003: 1.42p)
•     Cash of £1.5 million, no borrowings, and unused bank facilities of £300K
•     Interim dividend for the year ending 31st December 2004 to be announced in 
      November 2004

Commenting on the interim results, Peter Boycott, Chairman of Anglo Pacific,
said:

'I am pleased to be able to report another set of encouraging results for the
first six months of 2004 and further progress in the development of Anglo
Pacific and its asset base.

With the increasing demand for energy products from China, India and the Far
East, the outlook for coking and steaming coal prices looks to remain buoyant.
Developing our coal energy interests in Canada and elsewhere will remain a major
focus for the Group.

The Board maintains its strategy to pay a proportion of its increasing coal
royalty cash flow as dividends to shareholders, whilst endeavouring to make full
use of its substantial tax losses.'


Enquiries:

Brian Wides / Peter Boycott      Anglo Pacific Group PLC         020 7409 1111
Stephen Scott / James Harris     Scott Harris                    020 7618 6433





                           Anglo Pacific Group PLC
             Interim Report for the six months ended 30th June 2004


CHAIRMAN'S REVIEW

The first six months of 2004 has seen a distinct shift in sentiment away from
gold and precious metals towards base metals and in particular coal energy and
oil. Whilst the price of gold has remained stable, and still mostly reflects
dollar weakness, the prices of base metals and energy fuels have risen sharply
due to ever growing Chinese and other Far Eastern demand as well as
uncertainties over oil supplies caused by Middle East political unrest.

In the period under review the Company has maintained its gold and precious
metal investments albeit at a reduced level and has actively striven to increase
its exposure to base metals as well as coal and coal energy. This has been
achieved by taking profits on some of its quoted investments and expanding its
private coal interests in North America and elsewhere. Our half-yearly results
reflect this.


RESULTS

Following increased coal royalty receipts and substantial realised capital gains
I am pleased to report that Group profits before tax for the six months ended
30th June 2004 increased to £2,700,000 compared to £1,738,000 for the same
period last year. Profits after tax were £2,076,000 compared to £1,245,000 with
earnings per share for the half year of 2.36p compared to 1.42p.

Our coal royalty interests are now valued at £47.1 million as at 30th June 2004,
an increase of circa £2.8 million over the valuation at 31st December 2003.

Our mining operational interests and quoted stakes in gold, PGM and base metal
projects were valued at 30th June 2004 at circa £7.3 million after having
realised profits of £0.72 million over the period. Cash at 30th June 2004 was
£1.5 million with no borrowings and unused bank facilities of £300K.

On 6th August 2004 a final dividend of 1.3p per share for the year ended 31st
December 2003 was paid. Shareholders owning circa 53% of our issued share
capital opted to take further shares in the Company under the scrip dividend
alternative. The Directors also opted to take shares rather than cash in respect
of substantially all their shareholdings thus increasing their investment in the
Company.

The Company will announce its interim dividend for the year ending 31st December
2004 in November 2004, when a scrip dividend alternative will again be available
to shareholders.


OPERATIONAL REVIEW

COAL ENERGY INTERESTS

Coal royalties from the two mines in Queensland, Australia, increased to £2.39
million, (2003 £1.88 million).

The independent valuation of the coal royalty in June 2004, based on a net
present value of the pre-tax cashflow discounted at a rate of 7%, was £47.1
million (A$122.7 million) compared to £44.3 million (A$105.2 million) at 31st
December 2003. This increase has not been incorporated in the interim accounts.
At present the net royalty income is taxed in Australia at 30%.

As expected royalties are on an increasing trend due to production moving from
Crown Land to the Company's Private Ground and due to increased international
demand and higher world  prices.

Your Company's interest in the Merritt coal and coal bed methane projects in
British Columbia are in the process of being reversed into a Canadian quoted
vehicle where funds will be raised locally to take the projects forward. The
background for developing Merritt remains positive.

Work continues on the Groundhog and Peace River projects in British Columbia.
Your Board's confidence in these projects is reflected in the much increased
activity in British Columbia in this sector during the last six months with
projects going ahead at Perry Creek, Burnt River and Willow Creek amongst
others. With higher world prices for metallurgical, thermal and domestic coal,
Groundhog and Peace River have now become valuable assets which, as noted in the
2003 Annual Report, are carried in our books at negligible cost. Discussions on
developing these projects with joint venture partners continue and this will
remain a major focus of the Company.


OTHER MINING INTERESTS

The Company's mining interests still include a reduced stake in Kirkland Lake
Gold and a nearly 20% interest in Platinum Australia which has recently
announced projects in South Africa. These should produce good revenue returns
without the requirement for substantial inward investment. Your Company remains
confident in the ability of Platinum Australia to develop the process technology
associated with the Panton project.

As reported in the 2003 Annual Report, the Company has a number of stakes in
other quoted mining companies which are concentrated in North America, Canada
and Australia. These are now more focused on platinum, nickel, coal and base
metals and therefore should benefit from increasing world industrial demand.

The Company's interest in the Oxford Lake gold property has now been exchanged
for a near 20% interest in Alto Ventures Limited as announced in our recently
released quarterly cashflow report. Details on this and other Group interests
can be found on the Group's website at www.anglopacificgroup.com .


OUTLOOK

The outlook for coking and steaming coal prices looks to remain buoyant for the
next six months and 2005.

The Board maintains its strategy to pay a proportion of its increasing coal
royalty cashflow as dividends to shareholders whilst endeavouring to make full
use of its substantial tax losses.

To further this aim, the Company will continue to invest in other coal energy
and base metal projects which will benefit from increasing demand in China,
India and the Far East.


P.M.Boycott
Chairman
3 September 2004


Consolidated Profit and Loss Account
For the Six Months ended 30 June 2004


                                                    6 months to June    6 months to June     Year to Dec. 2003
                                                                2004                2003
                                                               £'000               £'000                 £'000

Turnover                                                       2,391               1,874                 3,376
Administrative expenses                                         -506                -419                  -849
Other operating income                                            65                  56                   106
Total operating profit                                         1,950               1,511                 2,633
Profit on sale of fixed asset investments                        718                 158                 1,360
Interest received                                                 32                  69                   116
Profit on ordinary activities before tax                       2,700               1,738                 4,109
Taxation on ordinary activities                                 -624                -493                  -869
Profit for the financial period                                2,076               1,245                 3,240
Dividends                                                          -                   -                -2,283
Retained profit for the financial period                      2,076                1,245                   957
Earnings per share                                            2.36p                1.42p                 3.70p
Fully diluted earnings per share                               2.33p               1.42p                 3.66p



Statement of Consolidated Retained Profits

                                                                            £'000            £'000         £'000
At 1 January - Balance b/fwd                                                5,510            4,553         4,553
Profit for the period                                                       2,076            1,245           957
Balance  c/fwd                                                              7,586            5,798         5,510



Consolidated Balance Sheet
As at 30th June 2004

                                                                      30th June 2004         31st December 2003
                                                                     £'000       £'000         £'000      £'000
Fixed assets
Tangible assets                                                                    847                      846
Coal royalties (at valuation)                                                   44,295                   44,295
Other investments (at cost)                                                      6,922                    6,047
                                                                                52,064                   51,188
Current assets
Debtors                                                              1,701                     1,052
Cash at bank and in hand                                             1,487                     1,642
                                                                     3,188                     2,694
Current liabilities
Taxation                                                              -189                      -265
Creditors - amounts falling due within one year                       -227                      -114
Dividends payable                                                   -1,146                    -2,283
                                                                    -1,562                    -2,662
Net current assets                                                               1,626                       32
Total assets less current liabilities                                           53,690                   51,220
Creditors - amounts falling due after more than one year
Deferred Tax                                                          -447                      -224
                                                                                  -447                     -224
                                                                                53,243                   50,996

Capital and reserves
Share capital                                                                    1,764                    1,749
Share premium                                                                      594                      420
Revaluation reserve                                                             42,582                   42,582
Foreign currency translation reserve                                                85                      103
Special reserve                                                                    632                      632
Profit and loss account balance                                                  7,586                    5,510
Equity shareholders' funds                                                      53,243                   50,996




Consolidated Cash Flow Statement
For the Six Months ended 30th June 2004

                                                                                                      Year ended
                                                                       Six months       Six months          31st
                                                                       ended 30th       ended 30th      December
                                                                        June 2004        June 2003          2003
                                                                            £'000            £'000         £'000

Net cash inflow from operating activities                                   1,400            1,644         2,690
Interest received                                                              32               69           116
Overseas tax paid                                                            -477            -1118        -1,614
Capital expenditure and financial investment                                 -162             -947         -1791
Equity dividends paid                                                       -1137             -956         -1525
Net cash outflow before financing                                            -344           -1,308        -2,124
Net cash inflow from share issues                                             189                -             -
Decrease in cash                                                             -155           -1,308        -2,124



Reconciliation of Operating Profit to Operating Cash Flow


                                                                                                      Year ended
                                                                       Six months       Six months          31st
                                                                       ended 30th       ended 30th      December
                                                                        June 2004        June 2003          2003
                                                                            £'000            £'000         £'000

Operating profit                                                            1,950            1,511         2,633
Depreciation                                                                    4                3             7
Net (increase) / decrease in working capital                                 -554              130            50
                                                                            1,400            1,644         2,690



Reconciliation of Net Cash Flow to Movement in Net Funds
                                                                                                      Year ended
                                                                       Six months       Six months          31st
                                                                       ended 30th       ended 30th      December
                                                                        June 2004        June 2003          2003
                                                                            £'000            £'000         £'000

(Decrease) in cash in period                                                 -155           -1,308        -2,124
Net cash at 1 January 2004                                                   1642             3766          3766
Net cash at 30 June 2004                                                    1,487            2,458         1,642




Analysis of Net Funds
                                                                     At 1 January                     At 30 June
                                                                             2004        Cashflows          2004
                                                                            £'000            £'000         £'000

Cash at bank and in hand                                                     1642             -155          1487



Notes



1.    Fixed asset investments

(a)          Coal Royalty Investments
                                                           £000's
             At 1st January 2004 and 30th June 2004        44,295
                                                           ______


The Group's coal royalty investments comprise the Kestrel and Crinum coal
royalties in Queensland, Australia.

The Company commissioned a valuation of Coal Royalty investments at 30 June
2004. Based on a net present value of the pre-tax cashflows discounted at a rate
of 7%, a valuation of £47.1 million (A$122.7 million) was produced, being £2.8
million in surplus of the current carrying value in the accounts. Net royalty
income is currently subject to a tax rate of 30% in Australia. The Company has
£11.7 million (A$30.4 million) of Australian capital losses, £2.1 million (A$5.6
million) of which are restricted connected party losses, to offset against any
potential capital gains. Neither the revalued amounts nor the related potential
tax liabilities are incorporated in the interim accounts.

In addition the Group has UK capital tax losses in the region of £29 million
available for offset against capital gains.


(b)    Other investments
                                              £000's
       At 1st January 2004                     6,047
       Additions                               2,805
       Disposals                             (1,930)
                                              ______

       At 30th June 2004                       6,922
                                              ______
                       

       Quoted investments                      6,806
       Unquoted investments                      116
                                              ______

                                               6,922
                                              ______


The market value of the quoted investments at 30th June 2004 was £7,338,000.
The directors' valuation of the unquoted investments was £116,000.


2.    Basis of preparation

These unaudited accounts, which do not constitute statutory accounts, have been
prepared using accounting policies set out in the Group's 2003 statutory
accounts.  The financial statements have been subject to a review by the Group's
auditors.  The 2003 accounts received an unqualified auditors' report and have
been delivered to the Registrar of Companies.


3.    Earnings per ordinary share

The earnings per ordinary share is calculated on the Group's profit after tax of
£2,076,000 and 88,059,638 shares.  Fully diluted earnings is calculated on a
profit after tax of £2,076,000 and 89,227,862 shares.


4.    This statement will be sent to shareholders and will be available at the 
      Company's registered office at 4a Accommodation Road, London NW11 8 ED.


                            Anglo Pacific Group PLC
                           Independent Review Report


Introduction

We have been instructed by the Company to review the financial information set
out on pages 2 to 4 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

This report, including the conclusion, has been prepared for and only for the
Company for the purpose of the Listing Rules of the Financial Services Authority
and for no other purpose. We do not, therefore in producing this report, accept
or assume responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with those
applied in preparing preceding annual accounts except where any changes, and the
reasons for them, are disclosed.


Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists principally of
making enquiries of Group management and applying analytical procedures to the
financial information and underlying financial data and based thereon, assessing
whether the accounting policies and presentation have been consistently applied
unless otherwise disclosed.  A review excludes audit procedures such as tests of
controls and verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance with Auditing
Standards and therefore provides a lower level of assurance than an audit.
Accordingly we do not express an audit opinion on the financial information.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2004.



Baker Tilly,
Chartered Accountants


Breckenridge House
274 Sauchiehall Street
Glasgow  G2 3EH


3 September 2004



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